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MD HB149

MD HB149
Income Tax - Subtraction Modification - Child Support Payments


summary

Introduced
01/08/2025
In Committee
01/08/2025
Crossed Over
Passed
Dead
04/08/2025

Introduced Session

2025 Regular Session

Bill Summary

Allowing a subtraction modification under the Maryland income tax for child support payments made by an individual during the taxable year that are paid to another person on behalf of the individual's child and required by a court order issued by any state; and applying the Act to all taxable years beginning after December 31, 2024.

AI Summary

This bill modifies Maryland state income tax law by allowing taxpayers to subtract child support payments from their federal adjusted gross income when calculating their Maryland adjusted gross income. Specifically, the bill permits individuals to deduct the total amount of child support payments they made during the tax year, provided those payments are made on behalf of their child and are required by a court order from any state. This means that parents who pay court-ordered child support can now reduce their taxable income in Maryland, potentially lowering their overall tax liability. The new provision will take effect on July 1, 2025, and will apply to all tax years beginning after December 31, 2024, giving taxpayers a new tax benefit for supporting their children financially through court-ordered child support payments.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Withdrawn by Sponsor (on 03/12/2025)

bill text


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